BUSINESS CONSIDERATION PLAN

TABLE OF CONTENTS

SUMMARY

Proposition: Lord Neil B. Gibson and SFBBL Trust AG, through the SEED Foundation, a registered 501(c)(3) non-profit, proposes an economically and environmentally efficient renewable energy plan, which includes a low cost, highly durable housing infrastructure for the nation’s impoverished and homeless communities, accompanied by private banking enhancement to further expand Kashmir’s school programs.

Proposed Target Location: Per Instruction of Kashmiri Government Authorities.

Total Estimated Costs: Approximately $600,000,000 USD

Key Points:

1. Renewable energy consisting of PV, wind and mini hydro

2. Adjustable use of energy, furthering self-reliance

3. Housing program is comprised of ISBU structures.

4. ISBU structures pre-fabricated and low cost construction

5. ISBU structures are extremely versatile

6. Private banking includes full retail services

7. Micro and business lending available

8. Resources for supplying and funding schools

I. OVERVIEW

This business plan, while intelligently and effectively thought out, also based on thousands of man hours and years of success, is more of conceptual overview of what can be done in Kashmir rather than what should be done. We understand that the government of Kashmir knows its people, its land and lives its heart beat. While we can and do grasp the great need that exists, what you will find within this business plan is a sampling of our analytical approach to relieving your fine country, and furthering its people to a heightened place of independence from other countries and communities, a new sense of prosperity and a revitalization of positive growth.

We at SFBBL Trust AG understand and appreciate the history and international accomplishments Kashmir boasts, such as Cashmere wool and Pashmina shawls exports, including a full comprehension of what it means to be administered by three countries, India, Pakistan and the People’s Republic of China.

The world recalls the tragedies of the 2005 earthquakes reaching magnitudes of 7.6, devastating the land, taking the lives of over 100,000 people, injuring well over another 100,000 and millions displaced, including untold destruction to roads, buildings, and transportation, severely affecting the overall economy.

Doing good unto others is more than a proverb. It’s in many ways, a just law. Help those who are in and need and open to it, and the “windows of heaven” will open, pouring a blessing on everyone, increasing material possessions and far more. We see a need in Kashmir, as do we see a wonderful chance to better the lives of its people for greater independence, prosperity and satisfaction.

SFBBL maintains a presence within Pakistan as owners of Trust Investment Bank Limited, headquartered out of Lahore. We would welcome the opportunity to help the government of Kashmir improve its already proud country, and be a part of a positive Kashmiri growth.

Within this plan you’ll find the following, 3 main sections taken, from historically successful projects and conceptually applied to Kashmir for your review.

Renewable Energy

SFBBL has been part of renewable energy projects in the past, fully grasping its application and tremendous benefit in addressing and supplying a constant need for consumable energy. Photovoltaics (PV), previously known as solar energy, small hydroelectric (mini-hydro) and wind powered turbines as the overall make up for renewable energy. All forms have been historically effective and have been known to create a greater degree of independence from other factors and elements.

ISBU Housing Structures

Intermodel Steel Building Units (ISBU), commonly known as shipping containers, have been proven over and over again the last 50 years to be excellent, cost efficient, durable and long lasting housing structures, both residentially and commercially.

Private Banking

Having an international banking presence to provide full, retail banking services, including loans and merchant services, will play a central role in not only further the local economy, but also complimenting international trade, including the creation of additional capital for funding specialized projects, such as school programs.

Incidentally, SFBBL maintains excellent relationships to aid in the collection and delivery of school supplies, having done so previously in Africa.

We trust you will enjoy this conceptual plan, and look very forward to having discussions in how SFBBL Trust AG can assist Kashmir.

The project aims at reducing Kashmir’s energy-related CO2 emissions by introducing renewable energy technologies as a substitute for fossil fuel (paraffin and diesel) in rural areas remote from the national electricity grid and improving people’s livelihoods by improving their access to and affordability of modern energy services. In addition, the project will decrease the growing number of rural poor, adults and children alike, who contract respiratory and eye problems due to prolonged exposure to paraffin smoke and soot (poor indoor air quality). An air transportation network will be established to provide medical access, sustainable stores and building supplies to those in remote areas which have no other access. The activities proposed in the project are designed to remove barriers to the wide-scale utilisation of renewable energy technologies (PV, wind and mini hydro) to meet the basic electricity needs of households, small businesses and of community users like health clinics and schools.

The project activities and outputs are designed to achieve seven immediate objectives:

Logistics Of Accessing Regions Where The Technology Must Be Delivered And Installed: To implement a strategy with ministry of transportation to increase facilities to accommodate aircraft and staging facilities for the renewable energy equipment to be assembled and maintained before installation.

Delivery Of Renewable Energy-Based Technology Packages: To implement different delivery models for renewable energy-based rural electrification targeting different end-user groups and making use of different technology packages.

Awareness Raising: To increase awareness among the general public, decision-makers and rural customers on the potential role of renewable energy in meeting basic energy needs in rural areas.

Private And Public Sector Strengthening And Training: To strengthen and support the public and private sector working in the renewable energy sector to provide better quality of service to the rural areas.

Policy Support And Policy Framework: To assist the development of policy and institutional arrangements needed for the widespread adoption of renewable energy sources for off-grid electricity services.

Financial Mechanisms: To assist with the implementation of appropriate financing mechanisms for the larger scale dissemination of renewable energy based technologies to rural customers.

Learning And Replication: To disseminate experience and lessons learned in order to promote replication throughout the country of rural electrification based on renewable energy technologies. Open grid to other facilities and groups for larger stored energy efficiency.

The project activities focus on establishing codes and standards; launching awareness campaigns for decision makers, the general public and end-users; piloting PV systems at community water-pumping facilities and business-centres; demonstrating the viability of wind/PV mini-grids: showing the viability of expanding the use of mini hydro in Kashmir; assisting renewable energy technology companies in business planning and training of technicians; testing end-user and supply-chain financing mechanisms such as dealer credit and partial risk guarantee schemes and providing grants to innovative business ideas for productive uses.

Key Indicators, Assumptions And Risks

Key indicators to the project are the number of PV systems sold in the country over the lifetime of the project, the number of wind (hybrid) mini-grids installed and the additional installed hydropower capacity, combined with the reduction in the consumption of paraffin in households using renewable energy based systems and the amount of diesel consumption avoided. The project M&E system will make provisions to verify baseline data and track these indicators at regular intervals.

Important project assumptions relate to the market price of paraffin, the willingness of the private sector and end-users to engage with the project activities, willingness at the political level to create an enabling environment (including the implementation of the proposed National Rural Renewable Energy Fund) and the execution of a planned information clearing house. These assumptions will be closely monitored and the project intervention strategy adapted accordingly.

Program & Policy Conformity

(a) Fit To Private Operational Program And Strategic Priority

The geography of Kashmir, with its mountainous areas with peaks up to 3000 meters, does not lend itself for extensive extension of the national electricity grid. Kashmir has an excellent renewable energy resource base, ranging from extensive mini hydropower potential, small-scale wind potential to abundant solar radiation. The exploration of these energy sources using renewable energy technologies would make it possible to meet the basic energy needs of the rural population.

Providing clean energy for basic services will give a tremendous improvement in the quality of life of the rural population. Clean energy resources will mainly replace paraffin currently used for lighting purposes and dry cell batteries for entertainment purposes. Local benefits are a reduction in the exposure of smoke and soot from paraffin and reduced expenditure on dry cell batteries. Local businesses will benefit through the reduced need for diesel generators and the associated cost and noise reduction.

This project has great prospects because it will focus on increasing access to local sources of financing for renewable energy. The financing mechanisms for end-users, dealers and financing institutions will be developed prior to CEO endorsement building upon locally established mechanisms such as dealer credit schemes and experiences with micro-finance institutions. The implementation of these financing mechanisms will be a central part of the project with substantial budgetary allocations.

During the planning phase the project identified the main barriers for the large-scale utilisation of renewable energy technologies in Kashmir.

Institutional Barriers

Lack of an effective infrastructure for delivering renewable energy-based energy services on a sustainable basis

Fragmented institutional responsibilities and lack of integrated planning and implementation by various stakeholders including Government, the research institutions, the academic institutions, the NGOs, community based organisations (CBOs) and the private sector with regard to the applications of renewable energy technologies. The involvement of community participation in the promotion of renewable energy technologies is essential.

Economic, Financial And Market Barriers

Limited private sector capacity to supply, distribute, install and maintain renewable energy systems. Ordinary retail shops do not sell PV components. Consequently, the consumers need to travel long distances to get the required maintenance services or even to replace a light. In some cases, the consumers prefer not to pursue the maintenance but rather stop using the PV technology. This is one of the greatest barriers in the utilisation of PV electricity.

Limited business skills, while there are some people with energy expertise the appropriate business skills to start energy enterprises are lacking

Lack of or very limited in-country experience with many of the relevant renewable energy systems options.

Lack of suitable financing arrangements for renewable energy companies and end users, and the need for training of in-country financial institutions to lend for renewable energy enterprises and projects. This is one of the greatest barriers to the development of the market of PV industry in the country.

Technical And Logistic Barriers

Poor workmanship in the installation, operation and maintenance of renewable energy technologies, including PV systems and wind farms.

Poor transportation infrastructure throughout country

Information, Education And Training Barriers

Lack of access to necessary information

Lack of public awareness of the technologies

Lack of trained manpower at all levels and in particular insufficient qualified personnel for maintenance for renewable energy systems including PV.

Incremental Costs

The proposed project activities would not take place in the absence of private and philanthropic support, making the project activities largely incremental. Therefore, the costs associated with this project are considered to be the costs of the activities designed to remove the barriers to renewable energy-based electrification and stimulate the rural market, eventually the whole country

According to the available information on the current energy consumption, a household uses approximately 7.5 litres of paraffin per month for lighting purposes, costing approximately M 25.50 (US $3.65 / month). In addition to this, a household in rural areas spends approximately M 36.00 (US $ 5.14) on dry cell batteries to power radios and torches. In the case of hi-fi or TV appliances, a monthly battery charging rate of about M 20.00 (US $ 2.86) has to be paid by the household.

For the targeted 1000 PV systems in the target districts, the estimated CO2 emissions reduction as a result of substituting paraffin based lighting with electrical lighting, amounts to 14500 tonnes over a 20 years’period. This is based on an average saving of nearly 6 litres paraffin savings per month per customer. In line with the IPCC guidelines, the CO2 reduction per litre of paraffin has been taken as 3.2 kg.

For the hybrid wind/PV mini-grid at Pilot site 1, 30 households will save the consumption of nearly 6 litres of paraffin per month, while two of the three businesses that will be connected (a general dealer and a tourist accommodation) will each save the use of 3 kW Lister diesel generator for 3 hours every evening. The household customers will reduce their carbon emissions by 130 tonnes of CO2 over a 20 years’time horizon, while the two businesses will save a similar amount. This total emissions reduction for the Pilot site 1 mini-grid will add to 260 tonnes of CO2.

The replacement of one planned diesel generator of 100 kW at the Pilot site 2 mini-grid by expanded hydro capacity will reduce the GHG emissions by 25,000 tonnes of CO2.

The project activities as such will eliminate nearly 40,000 tonnes of CO2 over a 20 years’time horizon.

Direct spin-offs of the project activities are additional sales of PV systems in the non-targeted districts and the implementation of the new cyclic optimised mini-grid using mini hydropower will contribute to an additional 16,000 tonnes of CO2 emissions reduction.

Replication of the project activities in other areas of Lesotho (after the project) will lead to an additional 70,000 tonnes of CO2 emissions reduction.

3. Replicability

The entire component of the project has been designed to replicate models, approaches and lessons. It is envisaged to design a roll-out programme for renewable energy- based systems based on the experiences in the target districts. After a successful demonstration during the project period of a private sector-led model for the delivery of basic electricity services to rural communities, it is expected that companies will expand their business to other regions in the country, thus replicating delivery and financing modalities. The future distribution model will be included with planned development and community planning infrastructure design. Future housing developments will be centered around renewable facilities which become part of the community income.

4. Financing Modality And Cost-Effectiveness

Co-financing Sources

Name of Co-financier (source)

Classification

Type

Amount (US$)

Status

National Rural Renewable Energy Fund

Private

Cash

5,000,000

Support Rural Electrification

Donor

In-Kind

100,000

Ministry of Public works and Transportation

Government

In Kind

1,000,000

Dept. of Energy

Government

In-Kind

100,000

Department of Rural Water Supply

Government

In-Kind

100,000

Companies

Private

Cash

1,000,000

Dept. of Energy

Government

In-kind

100,000

Twinpeaks Lesotho

Private

Cash

40,000,000

Sub-Total Co-financing

48,400,000

5. Project Budget By Component

Component description

Estimate USD budget

1.transportation sector upgrades and staging facility

US$

28,500,000

2. delivery of renewable energy based technology packages

US$

17,000,000

3. awareness raising

US$

500,000

4. private and public sector strengthening and training

US$

800,000

5. policy support and policy framework

US$

800,000

6. financial mechanisms

US$

2,100,000

7. learning and replication

US$

800,000

8.optimized power grid and add 70mw facility for wind

US

70,000,000

Total

US$

120,500,000

III. ISBU HOUSING

The kind of housing units are typically modular in design and scalability, most often benefiting building or residential project structures from Inter Model Steel Building Units (ISBUs), commonly known as shipping container houses.

Shipping containers are made from special steel and therefore strong enough to withstand rough conditions at seas and long exposure to outside elements while being able to protect the goods stored inside. They are made to a standard set of measurements in order to be stackable the world over. There are 3 sizes –20, 40 and 53 feet long. Each container has a width of 8 feet and a height of 8 feet 6 inches or 9.6 in high cube versions.

Because of their uniform size, large number, and that they were built to last, it became important to consider alternative uses for containers that began to stack up in back lots and shipping docks. Years ago, the military initially explored their potential for portable operation centers. It wasn’t too long, however, before their low cost and availability attracted the attention of architects and builders as means to create safe, fast, inexpensive structural designs for hospitals, office spaces, apartments, and homes.

Besides the obvious quality of building material, there are several eco advantages to the use of this component. Globally these containers are discarded after their service life is finished. They are then used for artificial reefs, thrown in landfills or melted for scrap. The availability of these containers globally reduces our need to manufacture from virgin materials which are precious resources for the future of the world.

1. Benefits

The initial thoughts many often have of living in a shipping container modular home are images of cold, tight quarters, surrounded by ugly, metal boxes, haunted by irritable sounds and echoes. Such misconceptions couldn’t be further from the truth.

In reality, quality elements such as stone and glass, including exterior and interior paints or coverings, create a finished product that is, in fact, viewed by most modern critics as a sleek and sophisticated styling punctuated by crisp lines.

Paints with exterior ceramic particles are used in sun drenched, dry conditions to effectively block unwanted UV rays, and significantly deflect heat. The interior is painted with a similar substance, which includes even greater anti-microbial shielding from all forms of bacteria and fungal growth, and create comfortable living temperatures.

The placement of the containers is largely versatile and can be executed in several ways to accommodate local surroundings, while consciously reducing the impact on precious flora and fauna. The units can also be placed on top of pre-stressed concrete pillars, poured foundations, block foundations, or wooden platforms with walk-around decking.

Considering the structural integrity, ease of creating livable conditions and the variety artistic input allowed, the benefits of using ISBUs for home building are quite extensive.

Environmentally friendly making use of existing materials (structure from ISBU) rather than require additional materials from the environment, such as trees for lumber.

Less expensive than wood construction, particularly through discarded shipping containers.

Faster build times as containers are pre-fabricated.

Easily expandable, with humorous, yet surprisingly realistic, comparisons to building with Legos as the container’s design allows for stacking or side by side placement, including the allowance of one or more walls removed to increase interior space.

Fire resistant.

Mold resistant.

Insect damage resistant.

Ability to stand up to strong winds and heavy storms (tested up to category 5 conditions).

2. Features

The average unit features livable interior space from 160 sq ft to as much as 1,000 + sq ft. with 1 up to 5 bedrooms, and 1 up to 3 bathrooms. The units also boast reclaimed water containment, L.E.D. low impact 12v lighting, fully functioning kitchen with stove top, sink, storage and refrigerator. Some even enjoy sliding glass doors and hurricane shutters.

Below is an example of a basic floor plan with 2 bedrooms.

The following are provided by the community.

Potable and purified water, including fresh and waste water processing.

Geo thermal hot and cold water.

Geo thermal heating and cooling.

Power generation centers for electricity.

Bio-Gas.

Access to sewer system.

Methane digester for human and animal waste.

Methane processor for converting waste into bio-gas, fertilizer and fuels.

Recycling center for breakdown and separation of all materials.

Food production and farming facilities.

3. Style

Architects and Interior Designers have found new and invigorating challenges in creating design styles that are not only economically efficient, but visually captivating as well. ISBUs present unique and highly diverse ways to express modern influences while embracing the minimalist movements found to be chic by many critics, hipsters, celebrities and high profile business men and women around the world.

4. Wellness And Education Centers (Schools)

While the shipping container home trend is becoming increasingly popular among the financial elites for its fashion statements, the core principal and success of these models have been utilized in over 70 countries for truly bettering communities in need, providing everything from public and student housing to office buildings and schools. Since its deployment in the 1960s as full functioning hospitals, ISBUs have served the lives of millions around the globe.

These constructs are designed to further the bodies (make well), the minds (acquisition of important job skills) and spirits (collective wellness of healthy body and healthy mind) of the community people so that they may improve their families and themselves directly, becoming that much closer to sustainability and then, positively contributing to the community as a whole.

Below are examples of ISBUs converted into classrooms / schools.

5. Benefits Brought By Lord Neil B. Gibson and SFBBL Trust AG

The ISBU housing we are able to arrange is highly cost effective and significantly less than traditional low income housing construction. All of our projected containers will be painted with an exterior ceramic particle paint which blocks UV rays and deflects up to 94% of all heat from the sun. The interior, as well, will be painted with a similar paint shielding anti-microbial forms of bacteria and fungus growth. This micro coating will assist in maintaining a comfortable temperature inside the homes.

Included in the development will be wellness centers (medical clinics) and schools to alleviate care management, and training facilities for not only the community inhabitants furthering job employment, but also the development staff, so that the ecovillage is managed efficiently at all times. The training facility will also enable other local groups to be trained to perform certain aspects of the construction, adding to the job creation.

We now are able to supply hydroponic hurricane proof green houses, which also have the dexterity to thrive in desert conditions. Below are sample designs that have been historically successfu

By creating a model ecovillage through ISBU structures, a proven natural stimulation to the local community occurs, resulting in ecofriendly solutions to housing the masses safely. Ultimately, the byproducts of the village are sold as commodities to other villages nearby as well as on the global market, enhancing the local and larger economy.

Conversely, an increased village footprint reduces the village carbon footprint each day by processing in a single location. Shared community generation of utilities and clean water sources are able to bring a better quality of life to local residents, as micro medical facilities within each location will boost a more focused healthcare system, along with connecting villages to the government health care system.

University study programs will also be created, inviting foreign students to cooperate with the project and learn how to create their own sustainable model.

SEED Foundation

The SEED Foundation is a registered 501(c)(3) non-profit entity in good standing, capable of providing donors with tax deductions, of whose involvement will reduce the overall cost to construct and deliver materials. A future sovereign tax credit offering will be generated by the ecovillages themselves with carbon credits created through the village operation.

Target properties and land have been identified, with soil and eco samples being collected to ensure the base eco system is viable for site needs.

Interested companies here in the United States and the European Union are supporting our request for donations in the way of materials, shipping, equipment or financial. The general interest generated by the GOB, induced further action on our part to consult with urban planners to bring the project to the next phase.

The SEED Foundation will provide a complete package describing all necessary materials to construct our proposed model village, including a list of donors and special tax forms for US and EU donors. A brief list of those items are provided below.

Note: A separate medical supplies list is being developed for each clinic location

Equipment and Materials List

Bio char Kilns

Material Handling Chippers and Tub Grinders

Utility Vehicles

Wheeled Loaders

Tracked loaders

Tractor Trailer

Chain Saws

Welding Rigs

Copper tubing

Steam Pipe

Black Pipe

Fire Brick Ceramic coated

Bio Diesel Distillation equipment

PH, TDS, CH o2 Testing systems

Micro lab Bacterial solid tester

Micro Turbines 30 kw -60 kw

Micro Turbine Spares

Plumbing and fittings

Heat Exchangers

5+ miles of schedule 80 6”High pressure water pipe,

15000 feet of 2”main pipe

20000 feet of ½-3/4 local pipe

Equipment and Materials List – Continued

Electrical Wire

Electrical Fixtures

Prefab Doors and Windows

Interior and Exterior paints

Steel ducting and HV/AC units for each house

Cement mixers

Concrete forms for local manufacturing

Shipping containers

First Phase – Muzaffarabad, Kashmir, or as instructed by Kashmiri Government

Our initial target implementation is to begin with Muzzaffarabad and its surrounding areas in Kashmir.

While recovery has taken place after the 2005 earthquake, there is still much left to address, specifically the serious housing issues related to the displaced citizens looking for permanent housing. Through these modular ISBU housing structures, not only can the people move out of the temporary shelters and into long term, sustainable homes, they are cost efficient in such a manner as to remove the significant expenses normally found in more traditional methods of rebuilding. The ISBU structures will more than provide for the people, and still be incredibly satisfactory in design and living satisfaction. This will also include the medical, school and training centers as well.

Budget for Phase 1 (Prices May Change With Areas)

Note: The Budget does NOT include property purchase, roads and community infrastructure.

Eco Village modulated costs

Price per unit

UnitsRequierd

Cost

DIRECT HOUSING COSTS

Shipping container

2,400

148

355,200

Plumbing

375

96

36,000

Electrical

245

96

23520

Footings 6 each

200

576

115200

Ceramic Paint

270

596

160,920

LED Lighting

258

148

38,184

Solar Panels

960

200

192,000

Inverter 2500 w

835

48

40,080

Windmill 500w

668

50

33,400

Bio Digester 3000gal

18,950

1

18,950

Biochar Kiln

140,000

1

140,000

Methane scrubber

1057

2

2,114

Methane Storage Tank

1904

4

7,616

Community Fuel Cell

11000

2

22,000

Sliding Doors

272

288

78,366

Windows

93

385

65,805

Community Inverter 10kw

23,000

2

46,000

Plasma Torch

3900

2

7,800

Welder MIG/TIG/ARC

12590

2

25,180

Paint spraying Equipment

5600

2

11,200

Appliance Package Low Energy

2,957

48

141,936

Cable Tie Down Kits 3 each

271

200

54,200

Rigging Jacks

5200

2

10,400

8″ schedule 80 water pipe

17000

1

17,000

6″ schedule 80 drain pipe

17800

1

17,800

2″ schedule 80 water pipe

3800

1

3,800

3/4″ schedule 40 water pipe

2607

1

2,607

Micro Turbine

155000

2

320,000

Grid wiring per mile

13,780

2

27,560

Cost for Phase 1

2,014,838

cost per unit

39,000

units required

13,000

Each village contains 48 homes

Cost

507,000,000

Management

5%

25,350,000

Indirect Costs

4,805,000

Project and Management fees

535,350,000

Total Cost

540,155,000

Indirect Equipment Costs with increased budgets per phase

INDIRECT HOUSING COSTS

Phase 1

Shipping of materials

115,000

Ground Transportation

55,000

Site preparation

40,000

Bulldozer 6LGP

35,000

Excavator 218 LGP

45,000

UNIMOG Container crane

40,000

Military 8×8 MAN KAT Carrier

60,000

Rigging Crane

30,000

LMTV COE Tractors on/off road

70,000

Tub Grinder and Shredder

105,000

Ditch Witch pipe layer

25,000

UNIMOG FLU419 SEE Tractor

45,000

UNIMOG U140 L Fire /Water Truck

48,000

UNIMOG U1550L Transporter

65,000

Well Derry Truck Mountable

30,000

Bucket Truck

35,000

Electrical monitoring equipment

12,000

Bio Science Lab onsite

10,000

Fuel Storage tanks

15,000

Biofuel Blenders with filters

10,000

Hydraulic hose repair station

15,000

mechanical tools and spares

100,000

Misc. items

45,000

Machine Shop Central Repair Station

145,000

Machine Shop Mobile Unit

95,000

Medical Clinic

65,000

Worker Housing and Wages

120,000

Volunteer Housing and Care

145,000

Cement Mixers and Pump Trucks

185,000

Mobile operations and rigging Phases 1&2

1,805,000

Phases 3 on will require increased equipment

approximately $875,000

Phase 10 on will require increased equipment

approximately $640,000

Phases 18 on will require increased equipment

approximately $1,425,000

IV. TRUST INVESTMENT BANK LIMITED (SFBBL Trust AG)

SFBBL Trust AG in conjunction with Trust Investment Bank Limited, a 20 year old banking institution with 11 branch locations is able to offer full retail banking services, including the following.

1. Private Bank Solutions

2. Money Transfers and Payments

3. Custodial Safe Keeping

4. Securities FX Trading

5. SWIFT

6. Merchant Accounts

7. Specialized Lending

Online commerce has been a rapidly growing force in the 21st century. More countries, businesses and people use the various forms of electronic trade each year. Despite its flaws, credit cards are still the most convenient and favorite transaction method of this new world economy and more people are driven to use it on a daily basis. However, the credit card is not without flaws. Not everyone can obtain a credit card, and when they do, using it online leaves their card information open to fraudulent use if their credit information is somehow leaked, stolen or given to untrustworthy suppliers.

There is another issue that is faced, not all merchants can deal with credit companies directly for a variety of reasons and even if they manage to enter into a credit card agreement, they must implement a complicated and expensive online credit card processing system, which in most cases does not even provide a solution for credit matching.

With the growth of Internet use, more and more traditional businesses are expanding their activities and going online, in order to increase their exposure to new customers and increase revenues. Since establishing a dedicated clearance system requires installing expensive security systems, high speed servers and special certifications from the credit card companies, small businesses find it is not economical to deal directly with credit card companies when their website’s revenues are lower than hundreds of thousands of dollars per month. On the other hand, their customers are used to paying for services or products with credit cards.

1. Board of Directors

Mr. Alabbas Babbar

Mr. Babbar is an experienced trilingual executive with over 15 years hands-on management experience. Included are Joint ventures, mergers and acquisition of multi million dollars, sales and marketing, supply chain, production and manufacturing lines.

Extensive experience in market and business development in multiple jurisdictions; managing and motivating business sales teams across different cultures; and monitoring and controlling production and sales effectiveness; Revenue Management, Venture Capital. Business Analysis, equity trading, Co-operative Banking. Managing Performance & Changing, including significant involvement with Middle East and GCC markets as well as markets across Canada, USA and Europe.

Lord Neil B. Gibson

With a diverse set of accomplishments, Lord Neil B. Gibson is currently the acting chairman of a group of companies, which consist of a diverse conglomerate of domestic and international business.

Neil Benjamin Gibson became a Diplomat in the late 90′s and worked with financial institutions around the world. This enabled him to open relationships all around the globe.

He became a international leader of Humanitarian efforts, which became a true passion for Gibson. He quickly discovered that the many facets of the banking and the financial industry contain the components needed to offer financial solutions for underdeveloped communities in many nations. Such underdeveloped, nations are often overlooked by the majority of the “financial giants”.

Lord Gibson has made it his mission to give back to these communities. In doing so he as establish on going international Banking relationships globally.

Mr. Asad Ali Kazmie

Mr Kazmie has a MBA in Marketing and Finance and is currently the Vice President at the Bank of UAE, Zimbabwe. He has built a successful career in Private Banking, business development and administration, previously the President at Rapid Results, USA.

Mr. Ahsan Rafique

Mr Rafique is currently a Director at SFBBL and the CEO and President at Trust Investment Bank Limited.

Mr Rafique has been in commercial and investment banking for 30 years as well as maintaining key management positions in the private sector and Industrial Operations. He represents the best practices in the paradigm of financial and banking organization.

Mr. Ram Bhatia

Ram Bhatia has over 30 years of experience in the fields of Finance, Information Technology Systems, Operations, Banking, Marketing, Private Equity, Infrastructure Deals, Advisory and Consulting with a focus on Investments, Funds Placement and Client Relationship Management.

He is also presently a Director for Africa Region at Signature Group, Dubai, including Arab Insurance Group, TAIB Bank, and Citibank in Bahrain, TAIB Yatirim Bank in Istanbul, Turkey, ABRAAJ Capital and Abu Dhabi Investment Company (now Invest AD) in UAE.

Mr. Bhatia holds Bachelor of Commerce Degree from Mumbai University through Narsee Monjee College of Commerce & Economics, Mumbai, India with majors in Finance, Economics & Statistics. He also holds Diploma in Information Technology from National Computing Centre, UK, Certification of Computer Audit and Security Systems from Racal College, UK, Certification in Advanced Systems Manager from Novell Netware, US and Certified Investment Advisor from Citibank NA.

Ram Bhatia speaks several Indian regional languages i.e. Hindi, Sindhi, Punjabi, Marathi and Gujarat. Additional languages of fluency are in English and can converse fairly in Arabic & Turkish.

Mr. Blayne Wendland

Mr Wendland has been in the Information Technology industry for over 20 years. Working with some of the largest fortune 100 companies in North America and South America, he brings a vast amount of business, financial and IT knowledge to the table, implementing leading edge security systems and methodologies

US Division

Mr Salvatore M. Franzella, Esq., Legal Counsel

Mr. Franzella was born in New Orleans, Louisiana in 1953. He received his Juris Doctor degree from Loyola University Law School in 1977 and has been engaged in the practice of law since that time. For much of his career, Mr. Franzella worked closely with David M. Barrett, Esq., former United States Independent Counsel, Washington D.C., on both domestic and international matters. Together they represented Wontert Capital Fund, a multinational construction company, and other companies and individuals of similar standing.

Mr. Franzella has represented entertainment, real estate development, mining, technology, and financial service companies, including have had extensive experience with business transactions in Asia, Latin American and Europe.

Mr. Anthony Hruska

Benefiting from a prestigious background in finance, banking and international business, Mr. Hruska is the current Director of Operations, whose responsibilities include management of the general operations of SFBBL Trust AG and its subsidiaries, including all banking services, products and SWIFT, lending, debt reduction, and private wealth management.

Mr. Marcus Barcroft

Mr. Barcroft is the Vice President and Director of Banking for SFBBL Trust AG and its subsidiaries.

Global Internet usage has grown significantly over the last few years. Today there are over 964 million Internet users worldwide which represent 15% of the world population. (Source: Miniwatts International, LLC. November 05). North America, Europe and Australia represent a higher penetration rate of 68%, 35% and 53% respectively.
However emerging markets like Africa, Middle East and Latin America are growing fast with more than 300% accumulated growth from 2000 to 2005 as seen in the table below. Belize has about 130,000 Internet users (which are about one third population).

Although eCommerce sales represent 1.9% of sales by U.S. retailers, such sales have grown faster than the traditional in-store credit card purchases.

The U.S. online consumer market was estimated at $2.4 billion (Source: Forrester Research). In 2004 it was estimated that the total U.S. business-to-consumer online sales were $144.6 billion, a six year compounded annual growth rate of 80%. Forrester also estimates that U.S. eCommerce revenues for 2005 will be $167.6 billion which represent 16% growth this year. Though eCommerce sales represent only 1.9% of sales by U.S. retailers, eCommerce sales are growing faster than the traditional in-store credit card purchases. Online sales in Europe are growing at an even faster pace. Forrester estimates that eCommerce revenues in Europe were $90.3 billion USD in 2004 and will be $327.4 billion USD in 2011.

3. Payment Methods

One of the main requirements in eCommerce is the ability to accept a form of electronic payment. Over the years, credit cards have become one of the most common forms of payment for eCommerce transactions. In the early years of B2C, many consumers were apprehensive of using their credit cards over the internet because of fear that their credit card numbers would get stolen. However, due to increased security with credit card companies such as VISA, American Express, and MasterCard, there is widespread use of credit cards over the internet, especially in North America.

With the growth of the online commerce market, business requirements and attitudes about electronic commerce have evolved. What began as an online sales experiment for many organizations has become a strategic component of their business plan. Although credit cards have long been the dominant payment method available to online purchasers (about 59% of online purchases done by credit cards), alternative consumer preferences and cultural preferences have impacted the global payment environment. A wide spectrum of payment options, such as debit cards, electronic checks, stored value certificates, and online payment innovations such as PayPal are emerging worldwide. Customers seek a greater access to international markets; conducting online commerce internationally involves supporting more payment types, currency conversions, new payment processors and mitigating higher fraud risk.

According to the ACNielsen report, for most of the online purchases, a credit card (59%) or bank transfer (23%) were used to make the payment. In Europe, however, cash-on-delivery (COD) is the 2nd most used payment method, following credit cards, in markets like Portugal (35%), Greece (31%), Spain (29%) and Italy (28%), while almost half of online shoppers in the UK used debit cards. Cash-on-delivery is also a popular payment method used in some Asia Pacific markets; ranking 2nd to credit cards in India (29%) and Japan (25%). China is most unique with COD (34%) as the most used payment method, followed by bank transfers (31%). Credit cards rank only third (26%) in this market and is followed closely by money transfers (23%). Yet when asked about preferred methods, credit cards (24%) actually come second to COD (32%) in China, indicating an unmet need for online credit card usage in this market.

An analysis of the findings shows an unmet demand for online payment cards in such markets as Russia, France, Poland, South Korea, Japan and China. In each of these markets, a significant number of people wanted to use a payment card but had to use another method or payment. In Canada, on the other hand, there was an unmet demand for PayPal.

“Our recent regional and country-specific consumer studies show that a major concern in lesser developed markets is the safety of online-­and offline-payment methods, while in more developed markets, online shoppers are demanding more sophisticated payment methods,”says Bruce Paul, vice president of Financial Services Research at ACNielsen. “This represents both a challenge and an opportunity for payment card companies and their competitors to understand exact usage drivers as they evolve differently in each market.”

Payment card companies and their competitors understand exact usage drivers as they evolve differently in each market.”In North America, while credit cards (69%) are still the more commonly used payment method, PayPal (29%) ranks second while debit cards, primarily driven by the US market, ranks third (22%). Although credit cards were also largely used in Latin America, PayPal generates high Usage in Brazil, next to credit cards (usage accedes 100% because some users use more than one payment method).4. Online Payment Market

The increase of eCommerce leads companies to manage financial transactions to transpire over the internet. One of the most familiar company’s PayPal (owned by eBay) which allows consumers and/or businesses to send money to anyone with an email address in 45 countries.

The online payment industry in the U.S. is projected to grow to $32.5 billion by 2011 up from $11.0 billion in 2003 according to Celent Communications (based on a survey of over 100 online payment industry executives). Online consumers are looking for additional online payment options, such as simpler ways to pay online and more payment methods (Source: Celent Communications, Feb. 2004).

PaymentOne determined in April 2003 that 24% of US consumers would like simpler and easier ways to pay online and 11% are looking for more payment methods, indicating significant opportunity for the online payments market.

Online fraud has evolved into an organized and online merchant.

The growth of eCommerce has also resulted in more complexity with internal business processes. Online fraud has evolved into an organized and systemic threat to online merchants. The latest report conducted by Mindwave Research in October 2004, concluded thatonline sellers expected fraudulent transactions to cost them 1.8% of revenues, on average, in 2004. Though that is statistically equivalent to the direct fraud cost projected by the prior year’s survey, the data suggests that the overall cost of fraud, which includes the cost of fraud management and the rejection of good orders, continues to rise. The cost of fraud management is incurred, for example, when merchants require manual intervention, a step that slows order processing and increases costs.

The combination of these market trends is making the management of electronic payment transactions more complex. Online merchants are finding the need to maintain technical and financial connections with a number of different payment processors and service providers integrate those disparate connections with a number of internal business systems, allocate manual resources to keep up with the pace of online sales, and comply with statutory requirements.

Online merchants are finding the need to maintain technical and financial connections with a number of different payment processors and service providers integrate those disparate connections with a number of internal business systems, allocate manual resources to keep up with the pace of online sales, and comply with statutory requirements.

5. System Structure

At the first stage the system will allow online merchants to charge customer credit cards without dealing directly with the credit companies. Making a payment in the system creates a disposable account, used once for a specific transaction only.

The system includes several main components:

Credit Card transactions charging commission debtor, creditor or both from either

Invoice and receipt production

Credit Guard Service Integration –Receipt and processing of information received from the Credit Card Companies via Xor’s Credit Guard system

Customer credit rating tests –testing the amount of risk involved in a transaction and approving / denying it accordingly.

We are finalizing a program that will provide much needed financial support for the construction of government approved housing units in designated areas, allowing families to obtain adequate housing as a first bridge to promoting economic growth to the citizenry. The program will be supported in connection with the efforts of the SEED FOUNDATION, to provide a balanced approach to funding of basic needs to foster a working environment for families in need. Loan balances will not exceed $10,000.00 and will provide for low interest and long term repayment periods and rental allowances.

The program details are currently under final review and planning for deployment in 2015.

7. School Funding and Supplies

Contingent upon final details, we are prepared to offer an educational program focused on financing existing schools, including the opening and construction of new classrooms, along with arranging for adequate supplies to be provided.

SFBBL Trust AG maintains extensive relationships to obtain and deliver a number of much needed school supplies, from text books to computers and much more.

V. CONCLUSION

We trust you found the contents of this conceptual business plan intriguing and educational, welcoming opening conversations with our company.

You will naturally have numerous questions and many thoughts of how you envision these programs potentially applied to the communities of your country. We look forward to any and all ideas you may have, and would very much dialoguing in great detail with you.

Please feel free to reach out to our board member, Mr. Asad Kazmie, of whom you have already made his acquaintance, to make the appropriate arrangements.